Seoul Housing and Communities Corporation (SH Corporation) announced on the 16th that transactions of allocation rights and residential rights in the urban development area of Gaepo Kuryong Village are not possible.
This is due to recent attempts by some residents to pursue a local housing association and assert the possibility of providing allocation rights, attempting so-called "mud contracts." SH Corporation warned that such transactions are not possible under current regulations and could result in significant financial damage.
An SH Corporation official noted, "Recently, numerous inquiries regarding the recruitment of members for the local housing association within Kuryong Village have been received by SH Corporation," adding, "Requests for confirmation on whether allocation rights can be obtained through joining the association or purchasing 'mud contracts' are also continuing."
SH Corporation indicates that according to the 'relocation measures and standards' announced on Nov. 30, 2023, there are no targets for the supply of allocation rights within the business area, and transactions of allocation rights and residential rights are subject to legal penalties.
Kuryong Village has been designated as an urban development area according to 'Seoul City Notice No. 2016-397,' and SH Corporation is promoting an urban development project through appropriation or use as the project executor. As a result, the establishment of a local housing association based on Article 11 of the Housing Act is not possible.
Furthermore, according to the 'Special Act on Public Housing' and the 'Land Compensation Act,' as well as the standards for relocation measures, to be eligible for the supply of allocated housing, one must be ▲ a legal owner of a building or ▲ an owner of an unlicensed residential building before Jan. 24, 1989. However, there are no eligible individuals in Kuryong Village.
Additionally, according to Article 65 of the Housing Act, the transfer and assignment of residential rights are explicitly prohibited, and violations may incur penalties such as invalidation of residential rights, cancellation of supply contracts, imprisonment of up to three years, or fines of up to 30 million won (or three times the profit).
SH Corporation is encouraging temporary relocation to rental housing, such as Happy Housing and National Rental, providing various support measures for securing housing stability for Kuryong Village residents, including a complete exemption of rental deposits and a 60% reduction in rent (100% rent exemption for low-income households and basic livelihood recipients). Currently, of the total 1,107 households, 751 households have completed early relocation.
Meanwhile, the urban development area of Gaepo Kuryong Village is currently in the final stages of appropriation resolution. The land was acquired by SH Corporation following the commencement of appropriation on Feb. 7, and the resolution regarding obstructions is expected to be completed by July. After that, phased demolition will begin in the second half of the year.
Appropriation resolution is a system stipulated in the 'Land Compensation Act' that allows for the compulsory acquisition of land or objects necessary for public projects when a negotiated purchase is not possible, ensuring protection of the owner's property rights while providing just compensation.
SH Corporation President Hwang Sang-ha said, "We are swiftly advancing compensation and relocation procedures to create a quality housing environment in Kuryong Village as soon as possible," urging citizens to be particularly cautious to prevent damages caused by illegal activities, such as so-called 'mud contracts.'